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Electrolux Group reported first-quarter 2026 net sales of SEK 29,543m, compared with SEK 32,576m, with flat organic sales of -0.5% (7.9). Organic sales growth was +3.6% in Europe, Middle East & Africa and Asia Pacific (EMEA APAC) and +8.0% in Latin America, driven mainly by higher volumes. North America recorded an organic sales decline of -11.6%, reflecting weaker market conditions.
Operating income excluding non-recurring items was SEK 198m (452), corresponding to an operating margin of 0.7% (1.4). The decline was driven by an operating loss in North America, mainly due to increased costs for U.S. tariffs and a significant slowdown in market demand. In addition, a change in accounting estimates for customer rebate provisions reflecting price volatility in prior months and a voluntary recall of a limited number of Frigidaire gas ranges jointly impacted operating income negatively with approximately SEK 0.3bn.
Regions EMEA APAC and Latin America reported improved operating income excluding non-recurring items, with operating margins of 4.1% and 7.9%, respectively. Increased cost efficiency contributed approximately SEK 0.7bn to Group operating income.
Operating income was SEK -266m (452), corresponding to an operating margin of -0.9% (1.4). This included a negative non-recurring item of SEK -463m related to previously announced actions in Latin America.
Income for the period amounted to SEK -470m (42), and earnings per share were SEK -1.74 (0.16).
Operating cash flow after investments was SEK -4,566m (-3,107), negatively impacted by an operating loss in North America and a seasonal increase in working capital.
Despite a flat European core appliance market in the quarter, organic sales increased. Operating income and margin improved, mainly driven by cost efficiency. Volume and mix improved, with increased market shares for the AEG and Electrolux brands and a strengthened position in the built-in kitchen segment.
In Brazil, growth in consumer demand continued. Latin America reported good organic growth, with improved operating income and a higher margin, adjusted for non-recurring items. Competitive pressure remained strong, and the operating income improvement was mainly driven by cost efficiency.
Market demand in the U.S. declined significantly. Price levels were estimated to have been up slightly year-over-year, but not enough to reflect the year-over-year cost increase from implemented U.S. tariffs. Negative external factors, mainly related to tariff costs, and the organic sales decline were the main contributors to the operating loss.
Operating income was further impacted by a change in accounting estimates for customer rebate provisions reflecting price volatility in prior months and by a voluntary recall of a limited number of Frigidaire gas ranges, jointly impacting operating income negatively with approximately SEK 0.3bn.
Electrolux Group announced on April 22 that it will end production at the Jászberény, Hungary factory, with production expected to cease by the end of 2026.
On April 23, Electrolux Group said it entered into agreements with Midea Group to establish a highly complementary long-term strategic partnership in North America. The company also announced it would accelerate its profitable growth strategy through the partnership, global organization and footprint optimization, and a fully underwritten rights issue of approximately SEK 9 billion.
During the first quarter, Electrolux also decided to cease manufacturing in Santiago, Chile, by the end of April, and implemented downsizing measures in Argentina. As part of a review of its global manufacturing footprint, the decision to cease production in Jászberény was announced earlier in the week.
Electrolux said its cost reduction ambition remains high. With SEK 0.7bn in cost efficiency in the first quarter, the company stated it is on track to reach its full-year 2026 cost efficiency outlook of SEK 3.5-4.0bn.
Following the downturn in the U.S. home appliances market in the first quarter, Electrolux revised the North America 2026 market outlook from “Neutral to Negative” to “Negative.” The Brazilian home appliance market developed positively in the first quarter, and while growth rates may slow during the year, the 2026 market outlook for Brazil was changed from “Neutral” to “Positive.” The market outlook for Europe remains “Neutral.”
Electrolux said its overall 2026 business outlook remains unchanged, despite expected additional costs related to extended U.S. Section 232 import tariffs on products containing steel and aluminum, applicable since April 6, 2026. The company noted that sizeable price increases have already been announced in North America with the ambition to offset the negative impact from tariffs.
President and CEO Yannick Fierling said Electrolux has taken decisive steps to accelerate its profitable growth strategy, including forming a strategic partnership with Midea Group in North America to accelerate growth, improve profitability, and provide a platform for the future. He also cited efforts to optimize the global manufacturing footprint and improve efficiency, alongside a fully underwritten rights issue of approximately SEK 9bn to finance profitable growth initiatives and strengthen the Group’s balance sheet.
A video webcast and telephone conference are scheduled for 09:00 CEST on April 24, with Yannick Fierling and Therese Friberg commenting on the report.
This information was submitted for publication on 24-04-2026 07:00 CET.
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